More cabs good for all is report's message

The Municipal Transportation Agency finally got the cover it needs to provide an overhaul of taxi service in the city.

The agency recently spent more than $400,000 for research and a report that recommended putting 600 to 800 more cabs on the street over the next few years.

That recommendation didn't exactly come as a shock to anyone who has tried getting a cab in the city. Except the suggestion made taxi drivers bristle, prompting one driver's wife to e-mail saying the study was "overpriced garbage."

"So WHAT if spoiled rich kids have to wait for a taxi on Saturday nights?" she asked. "What about the cab driver who works the Monday, Tuesday and Wednesday day shifts? ... How is he or she supposed to make a living?"

That's the logic that got us here in first place. Drivers and medallion (license) holders have always figured that by keeping the number of cabs low, they'd come out on the right side of supply and demand. And rather than a unified dispatch system that would access all the cabs in the city, cab companies each wanted their own private dispatch operation.

That's what makes the cabdrivers' complaints about the popular ride-sharing services disingenuous. Fewer cabs meant a vacuum in the market, and hip, young entrepreneurs recognized the business opportunity.

Ed Reiskin, the director of the MTA, said cabdrivers' and companies' attitudes have led to them "getting their butts kicked by Uber and these other (ride-sharing) companies."

Now, if we can get past the finger-pointing and posturing, let's get to the important message of the report. The author, Dan Hara, a recognized expert, says adding cabs can actually help the drivers and the companies.

"What is difficult to convey to people is that when you add different markets that have not been served, you have less slack time in the day," Hara said. "What we were hearing from customers is: I like the drivers, I like the service, I just wish they would come to my house."

Hara's report makes several clear points. First, in his opinion, taxis are a better alternative than ride-sharing services. If nothing else, he says, the idea of "strangers picking up strangers" is a prescription for problems. Although there haven't been any significant issues so far, Reiskin thinks the public would prefer to ride in a vehicle that is "inspected, fully insured and sets lower fares."

But adding taxis and creating a central dispatch to be used by all cab companies won't be effective without designing a smartphone app, which the ride-sharing services pioneered. The MTA is looking for someone to develop its own version, which will allow customers to book a fare, pay online and get notifications as the cab approaches.

With that in place, says MTA Board of Directors member Malcolm Heinicke, taxi companies could use their advantage - a much larger fleet than the ride-share companies.

"If you have the proper amount of cabs, especially during peak times, and an efficient dispatch system, taxis will beat out Uber and Lyft and SideCar the way they should - through competition," said Heinicke.

Another idea copied from ride-sharing groups is a premium that is applied as soon as the customer books a cab. If the driver shows up and there's no one there, the customer still must pay the premium for booking a cab.

"The way it works now is the customer is calling three cab companies and taking whichever comes first," Reiskin said. "If the driver knew the customer was going to be there and the customer knew the cab was definitely coming, it would be a win-win."

All of that, Heinicke insists, will mean more riders, better service and profits for everyone.

"I like to say, 'If we build it, they will ride,' " said Heinicke. "But I usually don't stand in a cornfield when I say it."